The S&P 500 holds a cautiously bullish tone as yields edge higher ahead of today’s CPI and core CPI releases, which will likely shape the Fed’s October 29 policy decision. Both metrics are expected to print above 3%, driven by tariff-related inflation, though the FOMC insists this is a “one-time effect”—a view increasingly challenged by broad-based demand weakness. Despite lingering inflation risks, a rate cut remains likely as the Fed prioritizes the deteriorating labor market. Economic strain has now spread beyond technology into industrial, retail, and service sectors, exacerbated by tightening credit from smaller regional banks. A policy pivot would temporarily ease liquidity stress and support household demand, but structural recovery still depends on capex revival outside technology.
Key Levels: Support at 6,653.9 | Resistance at 6,774.8
Investor Takeaway: RSI at 70 above MA line trending upward with flat MACD buying pressures; market resilience contrasts with deepening recessionary pressures across non-tech sectors.